Houston-based Halliburton will build a $20 million sand terminal in Windsor to support its hydraulic fracturing activity in the Denver-Julesburg Basin, the company said.

Halliburton will use 54 acres in the Great Western Industrial Park, which is being developed by the Denver-based Broe Group.

Sand is a key component in fracking fluid, which is pumped into wells under pressure to fracture rock and release more oil and gas. The sand props open the tiny fissures.

There has been an increase in hydrofracturing the in the basin as companies search the Niobrara formation, which is more than 6,000 feet below the surface, for oil deposits using horizontally drilled wells.

“With the increasing interest in horizontal well development in the DJ Basin, we have seen an increase in exploration and production by some of our key customers,” Halliburton senior region vice president Rick Grisinger said in a statement.

The company said the new terminal will support more than 500 employees working in the basin. Halliburton has 1,600 employees in Colorado.

Halliburton said it anticipates hiring for a variety of positions and that information can be found at www.gohalliburton.com.

Construction of the sand terminal will begin in the first quarter of 2012, with operations expected to begin in the second quarter of the year.

The Denver Art Museum plans to funnel a $25 million one-time gift into the estimated $150 million budget for renovating its iconic North Building in time for the structure’s 50th anniversary in 2021, officials announced Thursday.